E-House Rebuilding Hits Snag As Rights Plan Stalls
Portfolio Pulse from The Bamboo Works
E-House's restructuring efforts have stalled due to its inability to use its CRIC asset as collateral for a rights issue, necessary for raising funds. The company faces significant financial difficulties, with over 5 billion yuan in interest-bearing liabilities and upcoming loans and convertible notes. Its situation is exacerbated by the real estate market downturn, affecting its main revenue source from property developers. E-House had planned to raise funds through a rights issue and inject its assets into a joint venture with Alibaba, but the plan is now on hold.
March 11, 2024 | 5:20 pm
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Alibaba, involved in a joint venture with E-House, may face indirect impacts due to the stalled restructuring and rights issue of E-House, potentially affecting the joint venture's progress and Alibaba's investment.
Although Alibaba is indirectly involved through a joint venture with E-House, the direct impact on Alibaba's stock price may be limited due to the broader scope of Alibaba's operations and financial strength. However, the stalled restructuring of E-House could potentially delay or affect the joint venture's plans, indirectly impacting Alibaba's investment and strategic interests in the real estate sector.
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